The Cloud Collaboration market was valued at USD 31.78 billion in 2020 and is expected to reach USD 66.92 BIllion in 2026, registering a CAGR of 13.43% over the forecast period (2021-2026). Employees across organizations are using the cloud-based collaboration platform in order to share and work together on multiple projects. Cloud collaboration solutions enable employees to achieve high productivity with access to real-time data.
- Cloud collaboration solutions also offer high agility to the companies while enabling easy data sharing among remote and virtual users. Companies are now looking for services that offer easy access and increased productivity with the changing business requirements, thereby supporting the growing need for agile support.
- With the increasing automation trends, coupled with the changing mobility, it has become increasingly important for organizations to look for solutions that can offer services, thereby reducing the overall infrastructure costs. Moreover, businesses adopting mobile services are implementing new policies to increase their employee interaction and ease of use, which has become essential to provide access to data across multiple end-point devices.
- The growing demand for the application of the Internet of Things (IoT) across various end-user sectors among the emerging economies is also fuelling the operational feasibility, thereby providing relevant and secure cloud solutions. As most of the enterprises across regions are investing in these technology services, such investments are propelling the demand for the growth of the cloud collaboration market.
- Companies like Microsoft and Google, offer various team collaboration tools and software, such as Office 365, Microsoft Teams, Microsoft SharePoint, Google Hangouts, and Google Drive. As of March 2019, Microsoft Teams had more than 500,000 organizations on its platform, with 44 million active users till March 2020.
- The COVID-19 outbreak has been forcing multiple organizations to review their IT strategies as a top priority. Various organizations have also emphasized the importance of having the right cloud-based collaboration tool that will allow the employees to work remotely to limit the impact on productivity.
- The cloud-based solutions have been providing vital connectivity for businesses and populations. The supporting efforts in ensuring the workers can access critical business information while enabling secure real-time collaboration between co-workers are a primary reason for the increased adoption of these solutions.
Key Market Trends
Unified Communication and Collaboration Solutions to Drive the Market Growth
- Unified communication and solution have been making it easier for workers to stay connected to other employees and for customers and clients to reach them no matter where they are. With the need to make the enterprises more efficient and collaborative, the last few years have seen collaboration solutions rise steadily. These tools have increased the productivity and unlocked innovation by enabling virtual teams to work together across geographies.
- Another trend driving the demand for cloud-based solutions is the enterprises' desire to incorporate collaboration and communication tools into their business applications and workflow integration.
- Unified communications and solutions, since their launch, have emerged as a cost-effective solution for multiple organizations across various industries, such as healthcare and education. Moreover, the cloud-based delivery of these unified communications offered by companies, such as Mitel Networks Corporation and IBM, shapes the way organizations are managing their communication networks.
- According to AT&T, business leaders are increasingly looking for ways that will change the workplace. The market is witnessing robust growth in adopting cloud-hosted collaboration solutions due to the increase in the mobile workforce, coupled with the BYOD trend. In fact, unified communications and collaboration solutions are taking a significant share of the cloud-based deployments.
- Moreover, enterprises are increasingly comfortable using cloud-based solutions, either as stand-alone or as complementary hybrid solutions. One example of such a cloud-based collaboration application is Cisco's Spark, previously known as Project Squared.
Europe to Hold Significant Market Share
- Europe occupies a significant portion of the demand for cloud applications. According to the RightScale's State of the Cloud Report, over 80% of the North American and European companies were using a complex deployment model in the cloud, with 51% adopting hybrid and 21% adopting a multi-cloud strategy, with an average of five cloud providers. The penetration rate is increasing with automation trends, which has become increasingly important for enterprises to look for solutions that can offer these services.
- As cloud storage and collaboration tools are shaping the future of email communication, they are increasingly adopted with businesses using the cloud for emails and using automation and streamlining solutions, such as ERP.
- Besides hybrid cloud growth, companies are increasingly engaged in cloud-based technologies. Google, AWS, IBM, and Salesforce are engaged in significant cloud technology developments and make up for a significant share of Spain's current market for cloud-based services. Such factors are expected to create a scope for the cloud collaboration market in the region.
- The players are highly focused on developing encryption tools to secure the cloud collaboration platform. In December 2019, JetBrains launched the collaborative tool Space for DevOps teams. DevOps collaboration tool combines communication, team, and project management into a single environment. The software provides the automation of any workflow, from onboarding any new employees to configuring rules for merging requests into DevOps continuous integration and delivery pipelines. It also offers a meeting schedule, projects, tasks, commits, code reviews, and internal blogs feed.
- By streamlining the internal communications and enabling a collaborative culture, businesses could be empowered to work with more productively and more importantly, as one unified unit, which will ultimately support the businesses agility and increase the speed to decision making that is necessary for businesses of any size to remain competitive in today's fast-paced business world. These are some of the factors that are expected to drive the market in the European region.
The cloud collaboration market is highly competitive and consists of several major players. In terms of market share, few of the major players currently dominate the market. The major players with prominent shares in the market focus on expanding their customer base across foreign countries. The players are leveraging strategic collaborative initiatives to increase their market share and profitability. The companies operating in the market are also acquiring start-ups working on cloud collaboration technologies to strengthen their product capabilities. Some of the recent developments in the market are:
- May 2020 - Microsoft announced a slew of updates for its Teams collaboration and communications platform. Teams is getting new capabilities in the Shifts app, including new triggers and templates, to enable auto- approvals for shift requests.
- April 2020 - TrackingTime announced its new collaboration with Microsoft Teams. It is for team users, freelancers, and the employers and employees of even the largest corporations to track the time spent on any specific project. Besides task and project management, the software includes attendance and team management, timesheets, and client reports. As teams work on projects, the hours are stored to make reports easier than ever to complete.
- March 2020 -Cloud services provider, Volterra, announced its encryption tool to make file sharing via collaborative platforms more secure without using passwords or public-key cryptography. VoltShare encrypts data and files locally to add an extra layer of security to collaboration and cloud storage platforms, including Slack, Teams, and Dropbox.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support